Non-filers face hefty hike as property tax cap raised to 500%

(Web Desk): The Senate Standing Committee on Finance has approved a proposal to raise the tax limit on property purchases by non-filers from 130% to 500%.

During a meeting chaired by Committee Chairman Saleem Mandviwalla, Senator Shibli Faraz stated that individuals earning between Rs600,000 to Rs1.2 million should not be taxed, noting that someone earning Rs100,000 effectively receives only Rs42,000 in current economic conditions.

Federal Board of Revenue (FBR) Chairman Rashid Langrial informed the committee that income generated by private clubs would be taxed. However, Chairman Mandviwalla opposed this move. Langrial responded by saying that these clubs do not benefit the general public and serve the luxuries of only about 300 people.

Minister of State for Finance Bilal Azhar Kayani stated that tax will be imposed when income exceeds expenditures, stressing that this targets the privileged class. Most committee members supported taxing club income.

FBR officials added that the upcoming budget includes proposed restrictions on non-filers purchasing property or vehicles. The current proposal sets a 130% tax on property purchases by non-filers.

Senator Mohsin Aziz suggested raising this limit further, arguing that if a non-filer has Rs10 million, they should be allowed to buy property worth up to Rs50 million.

The committee approved increasing the property purchase tax cap for non-filers from 130% to 500%.

Finance Minister Muhammad Aurangzeb noted that penalties on non-filers were increased last year and that the government is actively working to bring non-filers into the tax net.

The committee also approved a proposal to tax online educational institutions and academies. FBR Chairman Langrial stated that some online academies earn up to Rs20 million per month and that teachers earning online income will also be required to pay tax.